INDIA RISING THE GROWTH OF AN AUTO INDUSTRY

With the steady arrival of new Chinese brands and the seemingly endless rollout of their new models dominating current motoring headlines, one could be forgiven for overlooking the growth of the Indian auto industry and its impact on the SA market

- By: Graham Eagle | Photos: Unsplash; Supplied

Chinese brands continue to dominate the motoring conversations in SA; this is hardly surprising when you consider their rapid growth in recent years and the fact that their two leading brands in SA are now firmly entrenched in the top 10 of our sales charts. Against this backdrop, the recent announcements from India's largest vehicle manufacturers have become even more newsworthy. In August, Suzuki achieved a monthly sales record in SA, further cementing its position as number two in the 2025 sales pecking order, while Mahindra celebrated the opening of its expanded and upgraded assembly facility at Dube TradePort, outside Durban.

Furthermore, Tata has announced its return to the SA passenger-car market with a four-model hatch and SUV lineup, including the Tiago we drove on page 48. These announcements should come as little surprise, considering that, for several years, a significant majority of SA's passenger-car and LCV imports have been sourced from India. Naamsa records show that, in 2024, imported vehicles accounted for 62.8% of the SA light vehicle market, with India supplying 173 742 vehicles to make up just over 57% of those imports.

From modest beginnings in the mid-20th century, the Indian motor industry is currently experiencing significant growth, producing more than six million vehicles in 2024 to make it the world's fourth-largest global auto manufacturing and export hub, behind China, the US, and Japan.

ORIGINS AND EARLY DEVELOPMENT

India's automotive story began in 1897 with the first privately imported car running on Indian roads, and until the 1930s, all vehicles were imported, with the numbers being minimal. The automotive industry began taking shape in the 1940s with the establishment of companies such as Hindustan Motors, Premier, Tata Engineering and Locomotive Company (now Tata Motors), Mahindra & Mahindra, and Standard between 1942 and 1948.